Watsco (NYSE:WSO) Stock, Quote.Headers.trade-ideas

Watsco

Watsco is the largest heating, ventilation, air conditioning, and refrigeration products distributor in North America. The company primarily operates in the United States (90% of 2023 revenue) with significant exposure in the Sunbelt states. Watsco also has operations in Canada (5% of sales) and Latin America (5% of sales). The company's customer base consists of more than 125,000 contractors that serve the replacement and new construction HVACR markets for residential and light commercial applications.

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This Semtech Analyst Begins Coverage On A Bullish Note; Here Are Top 5 Initiations For Friday

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Watsco, Inc. (NYSE: WSO) is benefiting from consistent investments in technological advancements and strategic buyouts. Also, the solid performance of heating, ventilation and air conditioning (HVAC) equipment and commercial refrigeration products segments added to the uptrend.

Here&#39;s Why Investor Should Retain Watsco Stock for Now

Wall Street

Price Target

Watsco Analysts Increase Their Forecasts Following Q2 Results

Watsco Inc

WASHINGTON HSOUL PATTINSN by Washington Hsoul Pattinson & Co., Ltd.

Washington H Soul Pattinson & Co Ltd

<h3>Gainers</h3>
<ul>
<li>Triumph Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGI#NYSE">TGI</a>) shares moved upwards by 34.7% to $25.25 during Monday's pre-market session. The market value of their outstanding shares is at $1.9 billion. </li>
<li>Air Industries (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/AIRI#AMEX">AIRI</a>) shares moved upwards by 17.66% to $5.13. The market value of their outstanding shares is at $17.2 million. </li>
<li>ATIF Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZBAI#NASDAQ">ZBAI</a>) shares rose 13.65% to $1.29. The market value of their outstanding shares is at $20.3 million. </li>
<li>Globavend Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GVH#NASDAQ">GVH</a>) shares moved upwards by 11.92% to $0.68. The market value of their outstanding shares is at $10.1 million. </li>
<li>Antelope Ent Hldgs (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AEHL#NASDAQ">AEHL</a>) shares rose 7.62% to $0.13. The company's market cap stands at $4.2 million. </li>
<li>Mynaric (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MYNA#NASDAQ">MYNA</a>) stock moved upwards by 6.31% to $0.47. The market value of their outstanding shares is at $11.8 million. </li>
</ul>
<h3>Losers</h3>
<ul>
<li>Heramba Electric (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PITA#NASDAQ">PITA</a>) shares declined by 40.6% to $0.54 during Monday's pre-market session. The market value of their outstanding shares is at $24.0 million. </li>
<li>Watsco (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WSO#NYSE">WSO</a>) stock fell 10.07% to $435.5. The company's market cap stands at $17.5 billion. </li>
<li>Lucas GC (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LGCL#NASDAQ">LGCL</a>) shares fell 9.95% to $0.54. The market value of their outstanding shares is at $42.9 million. </li>
<li>Sentage Hldgs (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SNTG#NASDAQ">SNTG</a>) shares decreased by 9.9% to $1.73. The company's market cap stands at $4.8 million. </li>
<li>Odyssey Marine Explr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OMEX#NASDAQ">OMEX</a>) stock fell 9.41% to $0.44. The company's market cap stands at $12.8 million. </li>
<li>KULR Tech Gr (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/KULR#AMEX">KULR</a>) stock decreased by 8.66% to $1.9. The market value of their outstanding shares is at $454.6 million. 
See Also: <a href="http://www.benzinga.com/money/best-industrials-stocks/" title="www.benzinga.com/money/best-industrials-stocks/">www.benzinga.com/money/best-industrials-stocks/</a></li>
</ul>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Movers

AEHL

AIRI

KULR

LGCL

MYNA

OMEX

PITA

SNTG

ZBAI

12 Industrials Stocks Moving In Monday's Pre-Market Session

Watsco's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WSO#NYSE">WSO</a>) short percent of float has fallen 3.6% since its last report. The company recently reported that it has 2.36 million shares sold short, which is 7.76% of all regular shares that are available for trading. Based on its trading volume, it would take traders 10.56 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Watsco Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1737657922_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Watsco has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Watsco's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Watsco's peer group average for short interest as a percentage of float is 4.80%, which means the company has more short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

How Is The Market Feeling About Watsco?

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our <a href="https://www.benzinga.com/analyst-stock-ratings">analyst ratings page</a>.
<ul>
<li>Stifel analyst Jeff Stantial initiated coverage on Flutter Entertainment PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FLUT#NYSE">FLUT</a>) with a Buy rating and announced a price target of $320. Flutter Entertainment shares closed at $257.56 on Thursday. <a href="https://www.benzinga.com/quote/flut/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Raymond James analyst Sam Darkatsh initiated coverage on Watsco Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WSO#NYSE">WSO</a>) with a Market Perform rating. Watsco shares closed at $491.10 on Thursday. <a href="https://www.benzinga.com/quote/wso/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>DA Davidson analyst Brent Thelman initiated coverage on Orion Group Holdings Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORN#NYSE">ORN</a>) with a Buy rating and announced a price target of $11. Orion shares closed at $7.29 on Thursday. <a href="https://www.benzinga.com/quote/orn/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>UBS analyst Timothy Arcuri initiated coverage on Semtech Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMTC#NASDAQ">SMTC</a>) with a Buy rating and announced a price target of $85. Semtech shares closed at $68.93 on Thursday. <a href="https://www.benzinga.com/quote/smtc/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>William Blair analyst Louie DiPalma initiated coverage on Sterling Infrastructure Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STRL#NASDAQ">STRL</a>) with an Outperform rating. Sterling Infrastructure shares closed at $178.48 on Thursday. <a href="https://www.benzinga.com/quote/strl/analyst-ratings">See how other analysts view this stock.</a></li>
</ul>
Considering buying SMTC stock? Here&#8217;s what analysts think:
<img decoding="async" src="https://www.benzinga.com/files/images/story/2025/1737123127_0.png" alt="" />
Read This Next: 
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<li><a href="https://www.benzinga.com/25/01/43049593/slb-jb-hunt-transport-and-3-stocks-to-watch-heading-into-friday">SLB, J.B. Hunt Transport And 3 Stocks To Watch Heading Into Friday</a></li>
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Raymond James analyst Sam Darkatsh initiates coverage on Watsco (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WSO#NYSE">WSO</a>) with a Market Perform rating.

Raymond James Initiates Coverage On Watsco with Market Perform Rating

Watsco (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WSO#NYSE">WSO</a>) has outperformed the market over the past 5 years by 8.71% on an annualized basis producing an average annual return of 21.88%. Currently, Watsco has a market capitalization of $19.14 billion. 
Buying $1000 In WSO: If an investor had bought $1000 of WSO stock 5 years ago, it would be worth $2,682.49 today based on a price of $475.00 for WSO at the time of writing.
<h3>Watsco's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1735310708_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

If You Invested $1000 In This Stock 5 Years Ago, You Would Have This Much Today

Watsco (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WSO#NYSE">WSO</a>) has outperformed the market over the past 5 years by 9.49% on an annualized basis producing an average annual return of 23.07%. Currently, Watsco has a market capitalization of $20.54 billion. 
Buying $1000 In WSO: If an investor had bought $1000 of WSO stock 5 years ago, it would be worth $2,843.78 today based on a price of $509.72 for WSO at the time of writing.
<h3>Watsco's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1734133517_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Here's How Much $1000 Invested In Watsco 5 Years Ago Would Be Worth Today

Watsco (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WSO#NYSE">WSO</a>) has outperformed the market over the past 10 years by 5.74% on an annualized basis producing an average annual return of 17.55%. Currently, Watsco has a market capitalization of $21.05 billion. 
Buying $100 In WSO: If an investor had bought $100 of WSO stock 10 years ago, it would be worth $506.47 today based on a price of $522.37 for WSO at the time of writing.
<h3>Watsco's Performance Over Last 10 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1733839235_0_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

$100 Invested In Watsco 10 Years Ago Would Be Worth This Much Today

Watsco's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WSO#NYSE">WSO</a>) short percent of float has fallen 5.73% since its last report. The company recently reported that it has 2.91 million shares sold short, which is 9.55% of all regular shares that are available for trading. Based on its trading volume, it would take traders 13.72 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Watsco Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1731086123_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Watsco has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Watsco's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Watsco's peer group average for short interest as a percentage of float is 5.30%, which means the company has more short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Looking Into Watsco's Recent Short Interest

WIIM

AAON

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FAST

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FTAI

GATX

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IIIN

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KTOS

MATW

REZI

ROCK

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Shares of companies within the broader industrial sector are trading higher after Donald Trump won the 2024 presidential election.

Offerings

Watsco Files For Stock Shelf Offering; Size Not Disclosed

Watsco (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WSO#NYSE">WSO</a>) has outperformed the market over the past 15 years by 4.06% on an annualized basis producing an average annual return of 16.01%. Currently, Watsco has a market capitalization of $19.08 billion. 
Buying $100 In WSO: If an investor had bought $100 of WSO stock 15 years ago, it would be worth $941.37 today based on a price of $473.47 for WSO at the time of writing.
<h3>Watsco's Performance Over Last 15 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1730316629_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Here's How Much $100 Invested In Watsco 15 Years Ago Would Be Worth Today

<h3>Gainers</h3>
<ul>
<li>FuelCell Energy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FCEL#NASDAQ">FCEL</a>) shares rose 20.2% to $0.39 during Monday's regular session. The market value of their outstanding shares is at $214.0 million. </li>
<li>Pixie Dust Technologies (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PXDT#NASDAQ">PXDT</a>) stock increased by 20.04% to $0.8. The company's market cap stands at $11.9 million. </li>
<li>AgEagle Aerial Sys (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/UAVS#AMEX">UAVS</a>) stock increased by 20.0% to $2.7. The company's market cap stands at $2.2 million. </li>
<li>NuScale Power (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMR#NYSE">SMR</a>) shares moved upwards by 18.57% to $21.83. The market value of their outstanding shares is at $2.0 billion. </li>
<li>Safe Pro Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPAI#NASDAQ">SPAI</a>) shares increased by 17.64% to $2.2. The market value of their outstanding shares is at $30.0 million. </li>
<li>WANG &amp; LEE Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WLGS#NASDAQ">WLGS</a>) shares rose 17.64% to $2.8. The company's market cap stands at $42.2 million. </li>
</ul>
<h3>Losers</h3>
<ul>
<li>Watsco (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WSO#NYSE">WSO</a>) shares decreased by 23.8% to $375.0 during Monday's regular session. The market value of their outstanding shares is at $15.1 billion. The company's, Q3 earnings came out 3 days ago. </li>
<li>1847 Holdings (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/EFSH#AMEX">EFSH</a>) stock decreased by 16.67% to $1.55. The market value of their outstanding shares is at $1.0 million. </li>
<li>FGI Industries (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FGI#NASDAQ">FGI</a>) stock declined by 16.05% to $0.82. The market value of their outstanding shares is at $7.8 million. </li>
<li>Safe &amp; Green Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SGBX#NASDAQ">SGBX</a>) stock fell 15.09% to $1.07. The company's market cap stands at $2.1 million. </li>
<li>Expion360 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/XPON#NASDAQ">XPON</a>) shares declined by 9.79% to $3.87. The company's market cap stands at $2.1 million. </li>
<li>LiqTech Intl (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LIQT#NASDAQ">LIQT</a>) stock declined by 9.55% to $1.8. The market value of their outstanding shares is at $10.4 million. 
See Also: <a href="http://www.benzinga.com/money/best-industrials-stocks/" title="www.benzinga.com/money/best-industrials-stocks/">www.benzinga.com/money/best-industrials-stocks/</a></li>
</ul>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

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WLGS

XPON

12 Industrials Stocks Moving In Monday's Intraday Session

Providing a diverse range of perspectives from bullish to bearish, 4 analysts have published ratings on Watsco (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WSO#NYSE">WSO</a>) in the last three months.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts have recently evaluated Watsco and provided 12-month price targets. The average target is $509.25, accompanied by a high estimate of $550.00 and a low estimate of $425.00. This upward trend is evident, with the current average reflecting a 4.35% increase from the previous average price target of $488.00.
<img src="https://www.benzinga.com/files/images/story/2024/1729782074_0.png" alt="price target chart" />
<h2>Breaking Down Analyst Ratings: A Detailed Examination</h2>
A clear picture of Watsco's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>David Manthey</td>
<td>Baird</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$540.00</td>
<td>$550.00</td>
</tr>
<tr>
<td>David Manthey</td>
<td>Baird</td>
<td>Raises</td>
<td>Outperform</td>
<td>$550.00</td>
<td>$522.00</td>
</tr>
<tr>
<td>Stephen Tusa</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Neutral</td>
<td>$425.00</td>
<td>$420.00</td>
</tr>
<tr>
<td>David Manthey</td>
<td>Baird</td>
<td>Raises</td>
<td>Outperform</td>
<td>$522.00</td>
<td>$460.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Watsco. This information offers a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Watsco compared to the broader market.</li>
<li>Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Watsco's stock. This examination reveals shifts in analysts' expectations over time.</li>
</ul>
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Watsco's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/WSO/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Watsco analyst ratings.</a>
<h2>All You Need to Know About Watsco</h2>
Watsco is the largest heating, ventilation, air conditioning, and refrigeration products distributor in North America. The company primarily operates in the United States (90% of 2023 revenue) with significant exposure in the Sunbelt states. Watsco also has operations in Canada (5% of sales) and Latin America (5% of sales). The company's customer base consists of more than 125,000 contractors that serve the replacement and new construction HVACR markets for residential and light commercial applications.
<h3>Understanding the Numbers: Watsco's Finances</h3>
Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.
Revenue Growth: Watsco's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 6.8%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.
Net Margin: Watsco's net margin is impressive, surpassing industry averages. With a net margin of 7.89%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Watsco's ROE excels beyond industry benchmarks, reaching 6.57%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 3.86%, the company showcases effective utilization of assets.
Debt Management: Watsco's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.16.
<h2>The Core of Analyst Ratings: What Every Investor Should Know</h2>
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;utm_source=benzinga-insights">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Key Takeaways From Watsco Analyst Ratings

Baird analyst David Manthey maintains Watsco (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WSO#NYSE">WSO</a>) with a Outperform and lowers the price target from $550 to $540.

Baird Maintains Outperform on Watsco, Lowers Price Target to $540

Watsco shares are trading lower following worse-than-expected Q3 financial results.

Watsco (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WSO#NYSE">WSO</a>) reported quarterly earnings of $4.22 per share which missed the analyst consensus estimate of $4.75 by 11.16 percent. The company reported quarterly sales of $2.160 billion which missed the analyst consensus estimate of $2.244 billion by 3.74 percent. This is a 1.55 percent increase over sales of $2.127 billion the same period last year.

Earnings Misses

Watsco Q3 2024 GAAP EPS $4.22 Misses $4.75 Estimate, Sales $2.160B Miss $2.244B Estimate

Watsco (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WSO#NYSE">WSO</a>) is gearing up to announce its quarterly earnings on Wednesday, 2024-10-23. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Watsco will report an earnings per share (EPS) of $4.76.
The announcement from Watsco is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
<h3>Historical Earnings Performance</h3>
The company's EPS missed by $0.18 in the last quarter, leading to a 1.74% increase in the share price on the following day.
Here's a look at Watsco's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q2 2024</th>
<th>Q1 2024</th>
<th>Q4 2023</th>
<th>Q3 2023</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>4.67</td>
<td>2.28</td>
<td>2.41</td>
<td>4.27</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>4.49</td>
<td>2.17</td>
<td>2.06</td>
<td>4.35</td>
</tr>
<tr>
<td>Price Change %</td>
<td>2.0%</td>
<td>1.0%</td>
<td>1.0%</td>
<td>-2.0%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2024/1729627392_0.png" alt="eps graph" />
<h3>Tracking Watsco's Stock Performance</h3>
Shares of Watsco were trading at $492.22 as of October 21. Over the last 52-week period, shares are up 43.65%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release. 
<h3>Analysts' Perspectives on Watsco</h3>
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Watsco.
The consensus rating for Watsco is Outperform, derived from 3 analyst ratings. An average one-year price target of $499.0 implies a potential 1.38% upside.
<h3>Analyzing Ratings Among Peers</h3>
The analysis below examines the analyst ratings and average 1-year price targets of FTAI Aviation, Core &amp; Main and Applied Industrial Techs, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.
<ul>
<li>FTAI Aviation received a Buy consensus from analysts, with an average 1-year price target of $134.44, implying a potential 72.69% downside.</li>
<li>Core &amp; Main received a Outperform consensus from analysts, with an average 1-year price target of $49.55, implying a potential 89.93% downside.</li>
<li>Analysts currently favor an Outperform trajectory for Applied Industrial Techs, with an average 1-year price target of $236.5, suggesting a potential 51.95% downside.</li>
</ul>
<h3>Summary of Peers Analysis</h3>
The peer analysis summary provides a snapshot of key metrics for FTAI Aviation, Core &amp; Main and Applied Industrial Techs, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

<table>
<thead>
<tr>
<th>Company</th>
<th>Consensus</th>
<th>Revenue Growth</th>
<th>Gross Profit</th>
<th>Return on Equity</th>
</tr>
</thead>
<tbody>
<tr>
<td>Watsco</td>
<td>Outperform</td>
<td>6.80%</td>
<td>$579.76M</td>
<td>6.57%</td>
</tr>
<tr>
<td>FTAI Aviation</td>
<td>Buy</td>
<td>61.69%</td>
<td>$181.05M</td>
<td>-185.29%</td>
</tr>
<tr>
<td>Core &amp; Main</td>
<td>Outperform</td>
<td>5.53%</td>
<td>$518M</td>
<td>7.41%</td>
</tr>
<tr>
<td>Applied Industrial Techs</td>
<td>Outperform</td>
<td>0.22%</td>
<td>$356.24M</td>
<td>6.16%</td>
</tr>
</tbody>
</table>

Key Takeaway:
Watsco ranks at the top for Revenue Growth and Gross Profit among its peers. However, it ranks at the bottom for Return on Equity. Overall, Watsco is positioned favorably compared to its peers based on the provided metrics.
<h3>Discovering Watsco: A Closer Look</h3>
Watsco is the largest heating, ventilation, air conditioning, and refrigeration products distributor in North America. The company primarily operates in the United States (90% of 2023 revenue) with significant exposure in the Sunbelt states. Watsco also has operations in Canada (5% of sales) and Latin America (5% of sales). The company's customer base consists of more than 125,000 contractors that serve the replacement and new construction HVACR markets for residential and light commercial applications.
<h3>Key Indicators: Watsco's Financial Health</h3>
Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.
Revenue Growth: Watsco's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 6.8%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.
Net Margin: Watsco's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 7.89%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Watsco's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 6.57% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Watsco's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.86% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Watsco's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.16.
<a href="https://www.benzinga.com/quote/WSO/earnings">To track all earnings releases for Watsco visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insights Ahead: Watsco's Quarterly Earnings

Watsco (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WSO#NYSE">WSO</a>) has outperformed the market over the past 5 years by 8.72% on an annualized basis producing an average annual return of 22.64%. Currently, Watsco has a market capitalization of $19.72 billion. 
Buying $100 In WSO: If an investor had bought $100 of WSO stock 5 years ago, it would be worth $276.46 today based on a price of $489.41 for WSO at the time of writing.
<h3>Watsco's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1729607610_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

$100 Invested In Watsco 5 Years Ago Would Be Worth This Much Today

Baird analyst David Manthey maintains Watsco (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WSO#NYSE">WSO</a>) with a Outperform and raises the price target from $522 to $550.

Baird Maintains Outperform on Watsco, Raises Price Target to $550

Watsco (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WSO#NYSE">WSO</a>) has outperformed the market over the past 10 years by 7.1% on an annualized basis producing an average annual return of 17.53%. Currently, Watsco has a market capitalization of $18.12 billion. 
Buying $1000 In WSO: If an investor had bought $1000 of WSO stock 10 years ago, it would be worth $5,006.88 today based on a price of $449.55 for WSO at the time of writing.
<h3>Watsco's Performance Over Last 10 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1725647413_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Here's How Much You Would Have Made Owning Watsco Stock In The Last 10 Years

Press Releases

Watsco Declares $2.70 Quarterly Dividend

Watsco's Second Quarter Earnings Call Scheduled on July 30, 2024

Watsco Reports Record Sales, Enhanced Operating Efficiency and Strong Cash Flow During Second Quarter

Watsco to Present at the 12th Annual Morgan Stanley Laguna Conference on September 11, 2024 at 3:10 p.m. PDT

Watsco Schedules Third Quarter Earnings Conference Call on Wednesday, October 23, 2024

Watsco Reports Record Sales, Enhanced Operating Efficiency, Strong Cash Flow and Improving Business Trends

Watsco to Present at the Stephens Investment Conference on November 19, 2024 at 2:00 p.m. CT

Watsco Schedules Conference Call to Review 2024 Fourth Quarter Performance and Annual Results

Baird

JP Morgan

Stephens & Co.

Morgan Stanley

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